Belmont residents have won their eight-year fight for the baths to be returned.
Lake Macquarie Council voted last night to build a new finger jetty and a three-sided net near Brooks Parade, allowing swimmers to safely return to the lake.
Mayor Kay Fraser says it's also safe for the environment.
"We now have this new eco-style netting, which not only protects swimmers from sharks, but also protects our small marine life like small seahorses and turtles," she said.
The baths will also include disabled access and a new amenities block.
The state government now needs to approve the netting, which could take six months.
Council estimates the project will cost $754,000, with an annual maintenance cost of up to $15,000.